BUSINESS IN ASIA TODAY - JUNE 16, 2010

KAZAKHSTAN, CHINA SIGN GAS, NUCLEAR ENERGY DEALS

ASTANA - China and Kazakhstan have agreed to build and finance a gas pipeline and deepen nuclear energy ties, extending Beijing's influence in a region where it has used its financial might to access natural resources. Chinese President Hu Jintao and Kazakh leader Nursultan Nazarbayev presided over the deals between state companies that gives Beijing greater access to resources and allows Kazakhstan, Central Asia's biggest economy, to diversify its energy exports. Lying on some of the world's biggest oil, gas, and metals reserves, Central Asia is at the center of a geopolitical tug-of-war between Russia, China, and the West, all seeking to grab a share of its untapped riches.

AUST'S NIDO PETROLEUM PUMPS FIRST OIL FROM PHILIPPINE FIELD

MANILA - Australia's Nido Petroleum Ltd. (ASX:NDO) says that about 56,708 barrels of oil have been produced by the Philippines' Tindalo oil field after the first oil flowed from the well in Northern Palawan. In a disclosure to the Australian Stock Exchange, Nido Petroleum said that it had completed a series of tests to further assess the productivity of the well and the source of the produced water. It said the tests confirmed that "well productivity exceeded expectations with high rate testing confirming well productivity in excess of 18,500 barrels per day." But the company said the production of oil at Tindalo was limited to 6,000 barrels per day for operational purposes due to the unavailability of a water processing unit.

AUSTRALIA'S WINTER CROPS GET BEST START IN YEARS: ABARE

CANBERRA - Winter crops in Australia's eastern states are off to their best start in several years, the federal government's commodities forecaster reports. Rain between March and May was the most widespread above-average rainfall recorded over the eastern states since 2003, the Australian Bureau of Agricultural and Resource Economics (ABARE) said. All but a few cropping regions received more than 100 per cent of their long-term average rainfall. However, further rain is needed to complete planting in some regions and to maintain soil moisture while crops grow. In contrast, winter crop prospects in Western Australia are not as positive, due to continued dryness.

MOODY'S SAYS OUTLOOK FOR UAE BANKS REMAINS NEGATIVE

DUBAI - Moody's Investors Service says the outlook on the United Arab Emirates' (UAE) banking system remains negative as a result of the country's weak operating environment and the significant challenges facing the emirate of Dubai in particular. The negative outlook expresses the rating agency's expectations for the fundamental credit conditions in the UAE banking system over the next 12 to 18 months, according to Moody's new Banking System outlook on the Gulf nation. Moody's said although systemic support provided by the UAE's federal government had eased, the banks' financial challenges, asset quality pressures stemming primarily from Dubai would continue to weigh negatively on the rating agency's outlook for UAE banks.

HYUNDAI HEAVY WINS US$190 MLN ORDER FOR SAUDI POWER PLANT

SEOUL - Hyundai Heavy Industries Co. (KSE:009540), the world's largest shipbuilder, said today that it has won a US$190 million order to build a gas-powered power plant in Saudi Arabia. Under the deal with Dhuruma Electricity Co., Hyundai Heavy will complete the facility in Dhuruma, 125 kilometers west of capital Riyadh, by March 20, 2013, the company said in a regulatory filing. Hyundai Heavy was picked as a preferred bidder for the power plant project in March this year. Hyundai Heavy plans to design, construct and test-run the plant.

JAPAN'S NKSJ TO BUY MIDSIZE TURKISH INSURER IN 1ST FOREIGN DEAL

TOKYO - Japan's NKSJ Holdings Inc. (TSE:8630) said Tuesday that it will acquire a midsize Turkish casualty insurance company for up to 28.1 billion yen (US$307 million) through subsidiary Sompo Japan Insurance Inc. The foreign acquisition will be the first for the holding company of Sompo Japan and Nipponkoa Insurance Co., established April 1. Sompo Japan has reached a deal to acquire 93.36 per cent of Fiba Sigorta's stock. The acquisition is expected to be completed by October. The Turkish casualty insurance market was valued at about 630 billion yen last year based on premium revenues, making it about one-tenth the size of Japan's, but it has grown at an average rate of 13 per cent over the past five years.

TAIWAN'S WISTRON, COMPAL EXPECT NOTEBOOK SHIPMENT GROWTH IN Q3

TAIPEI - Taiwan's contract notebook makers Wistron Corp. (TAIEX:3231) and Compal Electronics Corp. (TAIEX:2324) said Tuesday they expect shipments for the third quarter of this year to grow because of lessening impact on global demand caused by the debt problems in Europe. Wistron Chairman Simon Lin said he expects notebook shipments for the third quarter of this year to rise more than 10 per cent from the second quarter. Lin said that while the impact from the European crisis on demand for notebooks was visible in April, the impact moderated in May. He added that the company's shipments since the beginning of June had returned to normal levels. For his part, Compal President Chen Jui-tsung said on a separate occasion that he expects his company's notebook shipments for the third quarter to grow 5 per cent-10 per cent from the second quarter.

HYUNDAI MOTOR PLANS ANCILLARY UNITS IN ANDHRA PRADESH

HYDERABAD - Automobile major Hyundai Motor (KSE:005380) is set to ink an MoU with the Indian state of Andhra Pradesh to set up a spare-parts facility and other ancillary units, entailing an investment of over Rs 10 billion (US$215 million). "The company said it will invest Rs 5 billion (US$107.7 million) in the first phase and Rs 7 billion in the second phase. In turn the government will offer 50 acres at nominal price in the first phase and a similar size plot in the second phase," principal industry secretary B Sam Bob said here on Tuesday.

INDUSTRIAL GAS PRODUCER BOC INDIA SOARS 20 PCT ON DELIST OFFER

MUMBAI - Speciality industrial gas maker BOC India (BSE:523457) on Tuesday said one of its promoter group firms, Linde Holdings Netherlands BV, has made a proposal to buy an additional 10.52 per cent stake, taking the total holding by promoters to close to 100 per cent and later delist the company. Linde Holdings will acquire BOC India's shares at a minimum price of Rs 225.29 (US$4.86) per share. The delisting proposal comes after the government on June 4 made it a must for listed companies to raise public holding in them to 25 per cent. BOC India stock reacted positively on the delisting proposal and surged 20 per cent to touch a year-high at Rs 287.45 on the Bombay Stock Exchange.

STAR INDIA'S HOME SHOPPING CHANNEL MAY BE ON AIR BY AUGUST

NEW DELHI - Star India's home shopping television channel, Star CJ Network, is expected to be on air by August this year, a top company official said on Tuesday. "The Ministry of Information and Broadcasting has starting rolling out licences again and we expect ours to come in soon. Our channel is expected to be on air by August," STAR CJ Network India CEO Paritosh Joshi told PTI. Star India and CJ Home Shopping Co (KOSDAQ:035760) of Seoul had formed a joint venture in 2008 to tap the home shopping market in India. "Just a few months in business, but we have got the support of big brands including Satya Paul, Samsung, Phillips, LG and Gitanjali. This would only increase further as we expand when we have a full-fledged channel," Joshi said.